Japan's Credit Downgrade

Updated Feb. 26, 2001 12:20 a.m. ET

T his last week brought more proof that one of the biggest impediments to financial-sector reform in Japan is the country's "shame culture." This is the idea that Japanese are motivated to keep on the ethical straight and narrow not by feelings of guilt, but by fear of the shame that could result if they are exposed.

That explains why there's always a lot of public apologizing after a corruption scandal or some other problem is uncovered, but rarely is anyone particularly eager to go looking for the root causes...